US coal producer Alliance Resource Partners has reported a fall in fourth-quarter income of 36 percent on the loss of a tax credit and expenses that outstripped revenue growth.
Profits stood at $25.2 million in the quarter compared to $39.9 million in the corresponding quarter of 2007.
Revenue for the quarter increased 23 percent to $310.9 million, compared with $252.4 million in Q4 2007.
Operating expenses jumped 33.9 percent to $218.6 million in the quarter, up from $163.3 million in Q4 2007. The expiration of a tax credit for synfuel in 2007 reduced the quarter's profit by around $3.6 million as well, Alliance said.
The company said it expects production to increase to 28.5-29 million tons of coal in 2009 compared with 26.4 million tons last year and plans to go forward with the development of two large underground mines at River View in western Kentucky and Tunnel Ridge on the Ohio/Pennsylvania border
Tunnel Ridge is expected to produce up to 6 million tons of coal annually at full production in 2012 while River View will produce this year 6.4 million tonnes at full capacity. Mining at River View will commence later this year.
Work on new mines in southern Indiana and southwestern Pennsylvania is continuing, though no timing has been put on their operation.
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